BUDGET OVERVIEW 19 The image above depicts an arson investigation by the Bexar County Fire Marshal’s Office. 20 Bexar County Citizens Commissioners 4th Court of County District Attorney Sheriff County Clerk District Courts Court Appeals Courts-at-Law Justice of the Constables Tax Assessor District Clerk Adult Probation Peace Courts Public Defender's Department of Juvenile Records Centers Probate Courts Office Public Safety Department Military Services Jury Operations County Auditor Office County Manager Economic and Office of Criminal Emergency Information Budget Community AgriLife Public Works Justice Policy, Management Technology Development Planning & Programs Office/Fire Marshal Facilities Management and Bexar Heritage & Small Business & Human Resources BiblioTech Management Finance Parks Entrepreneurship Environmental Community Elections Bail Bond Child Welfare Services Venues Purchasing Board Juvenile Board Board Board Commission Stormwater Law Library Purchasing Elections* *The Elections Administrator is appointed by the Elections Commission. 21 Date Action May 29, 2020 Budget Submissions are due from Offices/Departments July 2, 2020 County Auditor provides preliminary previous year’s revenue estimates and projected revenues for the following year to Budget Department April 29, 2020 Appraiser provides preliminary certifications to assessor for taxing unit. July 25, 2020 Appraiser provides certifications to assessor for taxing unit. August 18, 2020 Assessor submits appraisal roll to the governing body of the taxing unit and provides the certification of the estimated collection rate and excess taxes from preceding year. Assessor submits no new revenue and voter approval rates to governing body. August 25, 2020 Presentation of proposed budget and tax rate to Commissioners Court. September 15, 2020 Public Hearing on Budget and the No New Revenue Tax Rate. Commissioners to take action on proposed budget after public hearing to adopt budget and tax rate. File approved budget with County Auditor and County Clerk and post it on internet. 22 BUDGET PROCESS OVERVIEW The FY 2020-21 Adopted Budget covers a twelve-month period from October 1, 2020 through September 30, 2021. The purpose of the budget preparation process is to develop a work program and financial plan for Bexar County. The goal is to produce a budget document that identifies County services, functions, and the resources (financial, personnel, and other) that support those services and functions. It serves as a policy document to define issues in a manner that allows Commissioners Court to make sound programmatic and financial decisions. The budget document provides Offices and Departments with a work program in support of their individual and collective missions. It also provides the County Manager/Budget Officer and the County Auditor with a financial plan to assure that the County operates within its financial means. Finally, the budget serves as an important reference document that provides extensive information on the nature and scope of County operations and services, and as such, must be clearly understandable by the taxpayers and citizens at large. The budget preparation process includes four phases (Strategic Planning, Strategic Management Activities, the Long Range Financial Forecast, and the Annual Budget), which are part of a larger financial management process, shown below: STRATEGIC PLANNING AUDITING STRATEGIC MANAGEMENT ACTIVITIES Financial PERFORMANCE/ ORGANIZATION Management LONG RANGE REVIEWS Process FINANCIAL FORECAST ACCOUNTING/ ANNUAL FINANCIAL BUDGET REPORTING 23 Phase 1 – Strategic Planning Strategic planning is the crucial link between the end of one fiscal year and the beginning of another. As a first step in the budget development process, the County staff outlines and frames short and long-term issues facing Bexar County and the surrounding region through a long-range financial forecast. It is a process that invites all County offices and departments to have input up-front and seeks out important issues from internal and external stakeholders. This broad range of involvement helps formulate key strategic opportunities and challenges facing the County over the next several years. And, it is a critical factor in the success of the strategic plan – ensuring cooperation and support from the organization’s leadership. Phase 2 – Strategic Management Activities The overarching plan for linking financial management, compensation management, budget administration, and operational accountability of County Offices and Departments is a large part of the strategic management process. The methodology is intended to provide a more transparent and fiscally sound method of matching service delivery demands to recurring revenues. It provides a framework that encourages Commissioners Court and the County’s elected and appointed officials to be partners in striving for long-term financial health. Strategic planning is an on-going, cyclical process that encourages Offices and Departments to budget for needed resources, implement sound management practices, document and report the results of their programs, evaluate those results, and develop appropriate actions to improve organizational performance. There are several key components to the planning process, as listed below, and discussed in more detail in the following paragraphs. • Planning • Budgeting (including compensation programs) • Reporting • Evaluating • Continuous Improvement • Financial and Management Flexibility Planning: Each Office and Department is asked to develop a service and performance plan that identifies its vision, mission, goals, and agreed upon performance measures for the upcoming fiscal year. To the extent practicable, Offices and Departments that work together in cooperative service areas are asked to collaborate with each other in the development of their plans. These planning elements are incorporated in their official budget submissions and become part of the historical budget document, providing a basis for future evaluation of efficiency and effectiveness. Budgeting: The annual budget process allocates available funding in a balanced and systematic manner between the needs of employees and the needs of citizens for increased services, while preserving financial stability for the County organization. Reporting Results: Offices and Departments submit performance measure reports annually as a part of the budget process. These reports, combined with the regular periodic expenditure reports available through the financial system, provide a foundation for evaluating Office and Department efficiency and 24 effectiveness – measured against the agreed upon standards in their service and performance plan. Data reported will compare actual and projected performance to the performance objectives identified in the service plan. Likewise, current and projected expenditures will be compared to annual budgeted appropriations. Evaluating Results: Offices and Departments are expected to use their service and performance plans to measure their on-going performance and to make strategic management adjustments, as needed, to achieve their overall goals, objectives, and performance measure targets. The Budget Department will work closely with Offices and Departments to evaluate the efficiency and effectiveness of budgeted programs. Recommendations, both from a management and budgeting perspective, will be made as necessary to help Offices and Departments achieve success in their respective program areas. Utilizing historical, internal performance trends (baselines) and benchmarking best practices of other similar service providers will help the County continually improve the quality and quantity of the services we deliver to our citizens. Continuous Improvement: The overall goal of the strategic planning and evaluation cycle is to keep the focus on continuous improvement of the services delivered by Bexar County agencies. Rigorous tracking and evaluation of performance and expenditure information will provide an important tool by which Offices and Departments can measure their success. By measuring and forecasting both performance and expenditures on a quarterly basis, County decision-makers will be better able to set the broad policy goals of the organizations and adjust management programs to enhance program effectiveness. Phase 3 – Development of the Long Range Financial Forecast and Strategies The Budget Department presents the Commissioners Court with a five-year financial forecast for the General Fund, the Debt Service Funds, and the Flood Control Fund. Also included are any strategic issues that could affect the County over the next five years. The Budget Department annually prepares the Five Year Long Range Financial Forecast (LRFF) for presentation to Commissioners Court and use by Offices and Departments. The forecast includes the following: an analysis of the projected revenues, expenditures and resulting fund balances for the County’s General Fund and Debt Service Fund; fund forecast scenarios; and an assessment of the major strategic issues affecting the County over the next five years. The Commissioners Court, the Office of the County Manager and all other Offices and Departments in the County use the LRFF to assist in setting the County’s overall priorities and understand the County’s financial position. The LRFF projects available funds as well as shortfalls for the coming fiscal year and the four subsequent years. The methodology used to project the fund balances incorporates